Indian hot rolled coil (HRC) exporters failed in their attempt to push up prices and rolled it back, reacting to bearish conditions in the Asian and Gulf destinations and expecting some improvements in buying sentiment post-holiday season in Europe, SteelOrbis learned from trade and industry circles.
Ex-India HRC price was reported in range of $575-585/mt FOB against mills quoting in range of $580-590/mt FOB a week ago.
Market sources said the latest deal was reported by an eastern region integrated mill for a small tonnage to a UAE based buyer at around $580/mt FOB (up to $630/mt CFR), while higher offers from most other mills did not receive responses.
In Vietnam, the indicative level for ex-India boron-added SAE1006 coils has been heard at $600/mt CFR, translating to $570/mt FOB. But according to market sources, this is primary level from traders, while mills have been either not offering due to tight competition or giving the price ideas at $610-620/mt CFR as the lowest, which translates to $580-590/mt FOB. Customers are not interested in buying ex-India material at such high prices, having Taiwanese options at $595/mt CFR.
“Buyers in Asia and the Gulf are seeking lower prices expecting benefits from fall in input prices like imported coking coal and iron ore [seen in July]. Sellers on the other hand are limiting themselves to rolling back price increases of earlier week as bids are only below $570/mt FOB received from the Asian region,” a steel sector analyst with a Mumbai financial service advisory firm said.
“It is not entirely gloomy on the export front. We are optimistic of the government rolling back the 15 percent export tax as our talks with finance ministry has been very positive. This can coincide with resumption of buying from the EU as the end of holiday season is near,” an official with a private mill said.
“In the short term, we can be very competitive in sales to Europe at current prices as soon as export tax levy is withdrawn,” he said.
